French bonds fell after Moody’s Ratings cut the country’s credit rating, putting more pressure on officials after far-right leader Marine Le Pen toppled the previous prime minister over a budget dispute.

The spread between French and German benchmark bond yields widened, signaling investor unease about France's public finances. France has endured a monthslong political crisis, driving up the premium investors demand for holding French bonds.

French stocks were sliding on Monday after Moody's downgraded the country's debt. The ratings agency slashed its score to Aa3 from Aa2, meaning it thinks there’s a slightly higher probability that the